The Coronavirus Aid, Relief, and Economic Security (CARES) Act allows withdrawal up to $100,000 from certain retirement plans without 10% early distribution penalty. Distribution should be made by December 30, 2020.
To find out whether you qualify, and how to plan your income in 2020 and succeeding years using this distribution, please contact Eileen Guber, CPA at (215) 876-9800.
YOU CAN CARRY THEM BACK AND GET REFUND OF YOUR TAXES FROM PRIOR YEARS!
Under The Coronavirus Aid, Relief, and Economic Security (CARES) Act Net Operating Losses (NOLs) for tax years 2018-2020 are required to be carried back five years. NOLs can fully offset taxable income, not just 80% as under the TCJA.
There are two options for filing NOL carryback claims: Form 1045 and amended return form 1040X. Taxpayer may elect to forgo carryback back period and carry losses forward instead.
To discuss which solution will be more beneficial to you and to your business, please contact Eileen Guber, CPA at (215) 876-9800.